shloboe boe
Nqobile Bhebhe, [email protected]
ZIMBABWE will leverage the World Economic Forum (WEF) annual meeting in Davos-Klosters, Switzerland, to advocate for crucial reforms to the global financial architecture and highlight the country’s rich natural resources, particularly in the energy minerals sector.
This year’s forum being held under the theme “Collaboration for the Intelligent Age,” will run from January 20 to 24, bringing together global leaders to address pressing challenges, including geopolitical shocks, economic growth and an inclusive energy transition.
Finance, Economic Development and Investment Promotion Minister, Professor Mthuli Ncube, will lead Zimbabwe’s delegation at the event.
Prof Ncube, who is also the chairman of the Committee of African Finance Ministers, stressed that reforming the global financial system is essential to better serve developing nations, particularly in Africa.
Speaking on the X platform last Thursday, Minister Ncube underscored the urgent need for change in the international financial framework.
Over the past years, leaders on the continent as well as civil societies and economic think tanks, have raised concerns over how the international financial architecture is designed, saying it does not work for Africa.
The continent has borne the brunt of multiple global crises, with many African nations slipping into debt distress or default, and government borrowings reaching unprecedented levels.
Prof Ncube pointed out that Africa’s unsustainable debt burden has hindered social service delivery, deepened poverty and created a dependency syndrome.
Despite being rich in natural resources, Africa continues to be disadvantaged by a global financial system designed to benefit superpowers, with terms that often trap developing nations in a cycle of hardship.
“There is an issue of reforming the global financial architecture such that it must benefit developing countries. We are recalling the reform of the global financial architecture in the sense that we need to scale up development financing,” said Prof Ncube.
“It should be more concretionary going forward. This is critical to support economic development, especially in areas around infrastructure.”
Prof Ncube said similar calls will be amplified at discussions at G20 level under South Africa on various strategies on how it could be achieved.
South Africa is this year hosting G20, an inter-governmental economic forum comprising 19 countries and two regional unions — the European Union (EU) and recently the African Union (AU).
It represents 85 percent of the global economy, 75 percent of world trade and 67 percent of the global population.
During the X engagement, Prof Ncube noted that WEF presents a platform for Zimbabwe to showcase its vast new energy minerals.
“We are faced with a wonderful opportunity in terms of opportunities created by the fast-paced development in artificial intelligence, new technologies, new minerals of the future and bio-technology,” he said.
“At Davos, we will also discuss climate change issues as climate shocks are an issue which are real issues to us. Another area is on industrialisation and the issue of new energy minerals comes into play and Zimbabwe is a key global player with our endowment in rare earth minerals.”
Prof Ncube said Zimbabwe will be contributing to how Africa should be contributing with its natural endowment in terms of the new energy minerals for maximum benefit.
Global demand for critical minerals is projected to grow three-fold by 2040, presenting a strategic opportunity for African producers including Zimbabwe to increase output and the development of untapped mineral deposits.
Zimbabwe has been working to grow mining to a US$12 billion industry, supported by its vast mineral resources especially gold, platinum, lithium and chrome, which should anchor economic upturn and the country’s Vision 2030 of becoming an upper-middle-income economy.
